Ola Electric's Q2 FY27 Revenue Falls 39% to Rs 421 Crore

Ola Electric's revenue from operations dropped 39% year-on-year to Rs 421 crore in Q2 FY27, down from Rs 690 crore a year earlier, according to its consolidated financial statements filed with the National Stock Exchange. The Bengaluru-based EV maker narrowed its net loss by 13% to Rs 362 crore during the same quarter, capping a prolonged slowdown that has now stretched across eight quarters.

The automotive business generated Rs 420 crore of that revenue, while the cell business contributed Rs 3 crore, before inter-segment eliminations of Rs 2 crore. The company recorded 41,650 EV registrations in the quarter, a 17% year-on-year decline.

Beyond operating revenue, Ola Electric booked Rs 27 crore in other income, taking total income to Rs 448 crore in Q2 FY27 — roughly half the Rs 896 crore reported in the corresponding quarter last year. Sequentially, the pressure didn't ease either: revenue from operations fell more than 7% from Rs 455 crore in Q1 FY27.

Where did the cost lines move?

The revenue decline came alongside a sharp pullback in spending. Procurement costs fell 38% year-on-year to Rs 295 crore in Q2 FY27, according to the exchange filing. That cut, more than anything, is what kept the loss reduction on track.

Not every line item cooperated. Employee benefit costs rose 22% to Rs 67 crore. Even so, total expenses fell 31% to Rs 810 crore, down from Rs 1,174 crore in the year-ago quarter. The cheaper procurement bill absorbed the payroll increase and then some, limiting the quarterly loss to Rs 362 crore.

The first half of FY27 tells the same story at scale. Revenue declined 42% to Rs 876 crore for the six-month period, while losses narrowed 17.5% to Rs 698 crore.

How does Ola stack up against Ather?

The contrast with its closest rival is stark. Ather Energy reported revenue from operations surging 63% year-on-year to Rs 1,464 crore in Q2 FY27 — and it turned profitable during the quarter. Ola, once the segment leader, is now shrinking while its competitor scales into the black.

Market share data underlines the slide. According to Vahan data, Ola Electric ranked fifth among EV two-wheeler players in October with 12,096 registrations and a 5.4% market share. It was the only player in the top five to record a month-on-month decline, with registrations falling 10.12% from 13,458 units in September.

What's propping up the balance sheet?

Ahead of the Q2 results, Ola Electric raised Rs 1,000 crore through a rights issue to strengthen its capital position amid the continued pressure. The fresh capital gives the company runway, but it doesn't fix the demand problem — registrations are falling while the market's top rivals grow.

Investors, at least on results day, read the numbers as a floor rather than a ceiling. Ola Electric shares closed 3.8% higher at Rs 35.74 apiece at the end of Thursday's session, giving the company a market capitalisation of Rs 16,542 crore ($1.74 billion).

The next test is volume: unless registrations reverse the 17% annual decline, cost cuts alone can only narrow the loss so far — and Ather has already shown the segment rewards those growing the top line.